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Tuesday, January 15, 2008

Fears of Recession? Not Here.

There's a lot of talk in recent months, and especially in the last two weeks, about the possibility of the economy slipping into recession. The failing real estate market, the hits taken by large banks like Citigroup, job cuts across the board, the weakening of the dollar, record oil prices, the rise in cost of wholesale goods and the fall in retail sales -- all these factors point to a nasty conclusion.

How will this affect Docucopies?

It's hard to say. Recession will most definitely touch nearly all industries in some way due to the "trickle-down" theory (a rising tide floats all boats, and a falling one sinks them). One might draw the conclusion that the cost of paper might rise along with other wholesale goods. In theory, this could affect Docucopies's prices.

According to the U.S. Department of Labor, paper and paper products fall into an industry class that also includes alcoholic beverages, tobacco, footwear, drugs, and other "nondurable" products believed to have a life expectancy of 3 years or less. Preliminary data for the producer price index in this industry shows a 5 percent increase in production costs in 2007. (Source: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?series_id=PCU424---424---)

But wait... those of you who've been our customers over the last couple years should notice that our prices have gone down, not up, over this period.

So it seems there's no indicator that our prices are suffering under current economic woes. Furthermore, if the rest of the economy were to suffer under a new recession, efforts by companies like Docucopies to keep their costs low could have a positive effect on the economy -- lower costs for the businesses that order our services means less price increase for their customers -- again, the old "trickle-down" theory (apparently it trickles up, too, despite perceived laws of gravity).

At any rate, no matter what happens to the economy as a whole, you can rest assured we will do all we can to keep our prices low. And if there are any changes in our prices, they'll be perfectly visible right on our main page -- not hidden in shipping costs, setup fees, etc.

It's just good business.

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